Hi-Tech Gears Receives Upgraded Stock Rating from MarketsMOJO, Shows Positive Growth

The Hi-Tech Gears, a smallcap company in the auto ancillary industry, has recently received an upgraded stock call from MarketsMOJO. The stock is now rated as 'Hold' as of September 4, 2024.

The company has shown positive results for the last three consecutive quarters, with a growth of 23.63% in its PAT (HY) at Rs 32.07 crore. Its ROCE (HY) is also at its highest at 12.91%, while its DEBT-EQUITY RATIO (HY) is at its lowest at 0.64 times.

Technically, the stock is in a mildly bullish range and its MACD and KST technical factors are also bullish. With a ROCE of 12.5, the company has an attractive valuation with a 2.7 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 122.55%, while its profits have risen by 67%. The PEG ratio of the company is 0.5, indicating a market-beating performance.

However, the company has weak long-term fundamental strength with a -4.49% CAGR growth in operating profits over the last five years. It also has a low ability to service debt, with a high Debt to EBITDA ratio of 3.41 times. The company's Return on Equity (avg) is at 6.32%, signifying low profitability per unit of shareholders' funds.

Despite its size, domestic mutual funds hold only 0% of the company, which may indicate that they are not comfortable with the price or the business. As domestic mutual funds have the capability to do in-depth on-the-ground research on companies, their small stake may signify a lack of confidence in the company.

Overall, while The Hi-Tech Gears has shown positive results and a market-beating performance, it also has some weaknesses that investors should consider before making any investment decisions.